COVID-19: India to take up affordable rental housing for migrants, urban poor
Government-funded housing in cities will be converted for the purpose, minister says
New Delhi: India’s federal government will launch a scheme under the Pradhan Mantri Awas Yojana for migrant labour and the urban poor to build affordable rental housing facilities for them.
Speaking to the media here, Finance Minister Nirmala Sitharaman on Thursday said that under the scheme, government-funded housing in different cities will be converted into affordable rental housing complexes under the public-private partnership mode.
Further, the government will also incentivise manufacturing units, industries, institutions, associations to develop affordable rental housing complexes on their private land and operate them.
The Centre will also incentivise state agencies and central government organisations on the similar lines to develop affordable rental housing complexes and operate them.
The government will issue detailed guidelines to give effect to the decision, Sitharaman said.
The announcement is part of the Rs20 trillion (Dh973 billion) economic package announced by Prime Minister Narendra Modi on Tuesday.
Sitharaman said the second tranche of economic stimulus package will be for the benefit of migrant workers, street vendors and small farmers.
She said 30 million marginal farmers have already availed Rs4 trillion of loans on concessional rates.
She also announced a series of liquidity measures for millions of small businesses reeling from the impact of COVID-19 lockdown, including collateral-free automatic loans worth Rs3 trillion.
Borrowers with up to Rs250 million outstanding and Rs1 billion turnover will be eligible. These loans will have a four-year tenure and have a moratorium for 12 months on principal payment.
There will be a 100 per cent credit guarantee cover to banks and non-banking finance companies on principal and interest. The scheme can be availed till October 31.
“This will enable 4.5 million micro, small and medium enterprise (MSME) units to resume business activity and also safeguard jobs,” said Sitharaman.